Allstate, Ford to Allow Sharing of Their Customers’ Driving Data

(Bloomberg) -- Allstate Corp. struck a deal with Ford Motor Co. that will allow some of the automaker's customers to share data with the insurer for its program that tracks mileage.

The majority of Ford and Lincoln 2020 model-year vehicles with embedded modems will be able to connect with Allstate's Milewise program, which is currently in 14 states, according to the insurer. Milewise allows customers to pay for insurance based on the number of miles driven.

Ford has been working with companies including Nationwide Mutual Insurance Co. to connect some newer vehicles with programs that measure how a customer drives and adjust a policy accordingly. For years, insurers have used telematic devices that connect to cars or apps to gather the information. Allstate said it expects data collected directly from vehicles to eventually replace such devices.

“Connected vehicles have the potential to deliver new benefits to Ford customers, including the ability to help lower their insurance premiums,” said Kari Novatney, chief operating officer of the automaker's FordPass mobile program.

Read more: The car of the future will sell your data

Allstate has been expanding programs that track drivers to offer discounts for safe habits or let customers pay for coverage by the mile. The company is testing a program that allows clients to see how driving habits affect a personalized price.

The agreement with Ford “gives drivers the ability to control and customize their auto insurance policy like never before,” Ginger Purgatorio, Allstate's senior vice president of product management, said in a statement.

To contact the reporter on this story: Katherine Chiglinsky in New York at kchiglinsky@bloomberg.net

To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Dan Reichl, Daniel Taub

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